The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-09-29
THE LOCKED lrr SURPLUS.
sECRETARY E,AIRCHILD HAS an mr.
PORTINT COMPUTATION WITH
NEW YOKk BANKERH,


NEW YOKK BANKRRH.
The Discussion Peints Ont that Other Meth
ode Must be Used to Get the Trcnsury's
surpius Money Int Business Cbanneis-
The secretary's Right to Buy Bends for
Other Purposes Than the sinking Fund.
The modest Office Of Assistant Treasurer
Charles j. CnndR In the southwest corner Of
the Sub Treasury was yesterday the scene Of
one Of the most important and highly interest
ing conferences that has been held In Wall
street, Or for that matter In any part OF the
United States. In number Of years. 1t was
called at tho request OF Secretary Fairchild,
and It's object was to consider tho financial pol
icy OF the Government and Its bearing on tho
financial and commercial requirements Of tho
country. II was considered natural sequence
to tho disturbed and anxious views ex-
pressed by New York bankers and mer-
chants In THE Bun OF Sept 10, who feared
that the vast absorption of funds by the United
States Treasury would lead to financial disas-
tor, tho immediate result OF which was shown
In the conference on Sept. 81 between PreSi-
dent Cleveland, Hugh 8. Thompson, Acting
Secretary of the Treasury, and Treasurer Hy-
att. when 1t WAS determined to purchase s14.-
100000 Government AIS and AZ. 1t was ac-
cepted ut that time that the purchase Of tile
s14000.000 bonds by the Government would
furnish the necessary relief.
Yesterdays conference was for the purpose
OF ascertaining Just how far this relief had or
was likely to extend, to determine whether
further disbursements by the Government
were necessary. and II so, to decide upon tho
best practical means for getting the surplus
out OF tho Treasury and shunting 1t into the
financial and trade channels of the country.
I;ni, fro, IN In M
on Monday The conference was hold at tho
suggestion OF tho President, and when. the
Secretary arrived at the Sub-Treasury shortly
before noon tho following gentlemen. in re-
sponse to invitations sent by Mr.. Cauda. were
there to meet him: Henry W. Cannon. Presi-
dent of the Chase National Bank: q. d. Bald
win. President Of the Fourth National Bank;
Harris Q. Fahnestock of the First National
Bank Conrad N Jordan. Vice. President OF the
Western National Bank; Jacob ID. Vermilyc,
President OF the Merchants National Bank;
George 8, Coe. President q the American Ex-
change National 9Sa Rens William IT, John
s sser Nons BsSk Eannad b. HAN
sonnsl Bsns Roses e. nesaoa Pssdsat
FTrederic T: oioots. Iresiaens q the Central S,
81 Rsp 3 Trust f
Wilson. the banker Of 9 Exchange court; John
enSsS sSwe Fl Co., anf
Mere also sent 81. PArpent Morgan q DreSei:
q tes & f Natpns baae RoFsnd n
Hazard. President Of tho American Loan and
dsn ns q aoabs"Hy nsS rss ps
ana MD Msssrs Tappen steWaTs and
q &onds ar Rs Rss
the financial situation. they thought that their
II was along toward 8 o'clock before the con;
Sns iSs @ fss KEEN falss
probation q the frssidents conduct In offeriIg
&c ssz as RS o a
already the floating bonds OF the 4hs had been
rendered to the Government. and others
Of tho Is. II was recalled that the Presdent's
offer to buy sl4 ,00D.00O Of those issues expires
on ono oct and that thus re- only have
generally accepted that Temporary relief had
been afforded BY. the Presidents circular, and
business world from Oct. 8 TO such time as the
next Congress can devise means to- reduce tho
revenue, the en,ormty Of which and the eonse,
OF as the root of all the disturbance
While there was pronounced unnnimity rs to
OF opinion as to the method OF the remedy. It
having been demonstrated to some that the
floating AZ and AS, particularly the latter
issue, had been absorbed in the regent calls
by the Secretary and the offer Of the President.
M the fits bs
for both issues, especially the As. This
suggestion received warm ssupnort by some
that the Presidents offer did not meet with tho
Il wod be sdsabe to desshae
larger number OF banks AS the repositories OF
internal revenue receipts. the banks, Furnish
oms W he W T II s0ass
Secretary Fairohlldt then called for the views
chase bonds not required for tho sinking fund.
I This appeared t. be a k1nHo net question with
Secretary OF the, Treasury to purchase United
States bonds with his surplus money was pro-
ana Esd sssop The act was the
That tho Secretary OF tho Treasury may at any time
Apply The surplus money IN the Treasury no, otherwise
proper 10 ts p9rehassor redemption OF United States
%
i, 1t appeared that the Secretary wished to get
in in the matter Il he Is in doubt after yostef-
Ing other plans preventing tho accumulations
fv Garland to furnish him With
an opinion as to the construction he should
accept of the statute.
Secretary Fairehd referred to tho tromen-
dous power. which the almost uniform inter-
probation OF the act conferred upon the Secro-
tary OF the Treasury, end said he would be
loathe to exercise 1t until he was fully and
legally convinced that he was empowered to.
The majority OF the bankers advised him that
the act empowered him TO buy. bonds not re-
fsealiea ' the seeretsry uf Tia. Scores
tary FolGer. Judge Gresham. and Secre-
tary Mccullough had furnished him with
satisfactory precedents In the premises.
The report for 1882, showing the purchase. OF
s50,000,000 OF the continued 8hs." the origl-
nal Gs OF July and August 1861. the report for
1888. showing tho purchase Of s65.OOO,Q00 OF
600, 900 Of the :. continued 0 Iss,' and the report
for 1884, showing the purchase OF sb2,000.00O
OF tho SIS, and all taken by the Secretaries
mentioned for purposes other than the sink
Ing fund we're furnished as precedcnts
Mr.. Fairchild listened TO tho arguments and
views on the question: but did not Indicate
that he had been convinced. He aiterWard
spoke Of the conference 10 u SUN reporter as
one called to get an expression of opinion on
the monetary situation, but he declined to
state his views as to the act Of March 8, 1881.
The. Impressions OF. those who attended the
conference are rs follows.
President Cannon-The recent action OF the
Treasury Department Offering to purchase